Consider the repeated game in which the following stage game is played twice in succession, with payoffs averaged between the two rounds (and no discounting). d f 0,0 18, 18 48, 10 e а | 4у, 4y 10,0 b 0, 10 0,0 10, 48 40,40

Consider the repeated game in which the following stage game is played twice in succession, with payoffs averaged between the two rounds (and no discounting). d f 0,0 18, 18 48, 10 e а | 4у, 4y 10,0 b 0, 10 0,0 10, 48 40,40

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Paramter y = 0

What is the highest payoff any player can receive in any subgame perfect Nash
equilibrium of the repeated game?

Consider the repeated game in which the following stage game is played twice in
succession, with payoffs averaged between the two rounds (and no discounting).
d
f
0,0
18, 18 48, 10
10, 48 40, 40
e
а 4у, 4у 10,0
0, 10
0,0

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